ARLIC vs. CHLIC: Which One Is Right for Your Client?

The Basics of CHLIC

Welcome back to the Dynamic Duo with me, Allie Shipman, and my partner, John Shinn. Today, we’re going to talk about the difference between Cigna Health & Life (CHLIC) and American Retirement Life Insurance Company (ARLIC). Both of those are under the Cigna Supplemental Benefits umbrella company, but they’re very different. For Cigna Health & Life, what we call CHLIC, have really great low rates for clients. They have preferred underwriting for the most part, and clients need to be relatively healthy to get those low, competitive rates. Whenever you do a quote on our Comparative Rater, they’re right at the top almost every time. It’s also a national A-rated company.

The Basics of ARLIC

The other company is called American Retirement Life Insurance Company, or ARLIC. They tend to have higher rates, but they have substandard underwriting. Now, when it comes to substandard underwriting, usually there’s only two options: preferred and standard. With ARLIC, there are four. With substandard underwriting, they approve people, who may not have been eligible in the past, so it really expands your client base.

Important Details about Both

There are big differences between CHLIC and ARLIC. CHLIC, Cigna Health & Life, is the newest of the two companies. Their rates are exceptional, and we’ve had a record year with Cigna Health & Life. It is by far our #1 biggest seller nationally. They have normal underwriting like what you’re used to seeing with Medicare supplements and a lot of other good things. But mostly, they have good rates at most ages. It is especially competitive around age 70.

Now, ARLIC is something we want you to know a lot about. Up until the change in their underwriting, which allows us to take people who were declined for regular Medicare supplements, we’re now allowed to submit those applications to ARLIC. ARLIC will consider those underwriting conditions.

ARLIC Will Consider People with Major Health Conditions

With ARLIC, they will consider people with COPD, which you’re not going to see on really any other Medicare supplement. They’ll consider people with emphysema, diabetes, neuropathy, cirrhosis of the liver, and even people with dementia & Alzheimer’s. ARLIC will also consider people with heart conditions like angina, a stent placement, Atrial Fibrillation, and pacemakers. You will get an automatic decline if you send that application in to other carriers. This is what ARLIC is for. The way they do this is they’ll bring the application in, and if they approve it, they’re going to rate the premiums up. It’s going to be a higher premium, but they’re going to consider people who have some of these health conditions.

We’re having great luck with this plan. We see people that are over age 70 who are now stuck with an old plan. They are often outdated and premiums have risen to $300-400 a month. We can help take some of those people and have Cigna consider them and bring them in at a much lower price. The main thing we wanted you to know today is that Cigna has two totally different, A-rated companies that provide Medicare supplements.

What you don’t want to do is submit an application for someone with substandard underwriting to Cigna Health & Life. They’re really not geared for that. They’re geared for just regular, normal, underwriting. You want to take those people who have health conditions and submit them to ARLIC, American retirement Life, and you’re going to be happy with that process.